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No Ordinary Duck
- Joined
- 14 October 2004
- Posts
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absolutely , and that is part of the problem , add in some ( hard to predict ) inflation/stagflationI don’t know the goal posts keep moving,
for how long ??At this point in time, retiring with 1 million in super earning just under 5%, if you are lucky,(assume own on home, no debts etc) should provide a comfortable lifestyle.
That brings up another point. Eg have your funds invested in assets that are naturally inflation hedged, eg real estate and shares.for how long ??
land rates and other taxes will rise in one way or another , other services will rise in parallel to rising business costs
a lot of durable goods bought in current times aren't as durable as their predecessors
$3 million now might seem extreme ( to inflation ignorant Leftoids ) but if your investment returns barely keep pace with real inflation $3 million is liable to become pocket change in say 10 to 15 years time
remember half the home owners in the east coast capital cities have become millionaires simply by paying out their mortgage , local and state fees and charges will rise in parallel to those rising valuations , so eroding your investment returns
That brings up another point. Eg have your funds invested in assets that are naturally inflation hedged, eg real estate and shares.
Agree but one option few consider: move...Yep. It is one reason to never stop investing even in retirement. For those who own their own PPOR, there is a need to cover the annual non-discretionary costs of living in the property; rates, utilities, maintenance, insurance, etc. Factor in the percentage of the income you expect to receive in order to cover those costs. Unless you prefer to live in a tent.
Agree but one option few consider: move...
The immediate backslash being usually family : valid and very personal
Healthcare ..as if healthcare in Australia was free and better quality..maybe for some but not everyone and everywhere
And obviously personal taste as to do you want to live in Portugal, Vietnam, Costa Rica, or relocate in a country place in Australia.
FIRE community has these questions discussed and answered:
Financial Independence, Retire Early (FIRE): How It Works
Financial Independence, Retire Early (FIRE) is a movement dedicated to living frugally to retire at a young age. FIRE devotees aim to save at least 25 times their annual expenses.www.investopedia.com Aussie Firebug | Financial Independence Retire Early
Aussie Firebug is an anonymous blog detailing the journey to financial independence through investing in real estate, low cost index funds and Super. By investing at a young age and consistently it is possible to reach a point where your investments pay you enough money to live off forever...www.aussiefirebug.com Australian Financial Independence Calculator - Aussie Firebug
The ultimate Financial Independence Calculator for Australians that incorporates Super and current Australian preservation laws.www.aussiefirebug.com
The Shockingly Simple Math Behind Early Retirement
This is the blog post that shows you how to be wealthy enough to retire in ten years. Here at Mr. Money Mustache, we talk about all sorts of fancy stuff like investment fundamentals, lifestyle chan…www.mrmoneymustache.com The 4% Rule: The Easy Answer to “How Much Do I Need for Retirement?”
In the world of early retirees, we have a concept that goes by names like “The 4% rule”, or “The 4% Safe Withdrawal Rate”, or simply “The SWR.” As with all thing…www.mrmoneymustache.com
FIRE community is like financial planning for the layman, you can learn some more quantified stuff:
Retirement's Volatility Bogeyman - GestaltU
Investment marketing is like watching a talented magician ply his trade. While the marketing geniuses keep everyone focused on the hottest new funds and stocks in an effort to chase strong returns, people forget about the single most important thing that matters to your retirement portfolio...www.gestaltu.com You're Looking at the Wrong Number
In a prior post entitled ' Retirement's Volatility Bogeyman ' we introduced the critical concept that volatility is the unsung villain of r...gestaltu.blogspot.com
These are questions that while you can answer yourself, a qualified financial planner type person can explain how you figure it out properly, what terms like Safe Withdrawal Rate/Retirement Sustainability Quotient etc mean.
The more you dig the more you will realise that whatever answer you give depends entirely on assumptions you make and you have to make a lot of assumptions:
* future of your employment
* future suitability and affordability of your housing
* future of government safety nets for old people
* future returns
* future inflation
* future climate
* future economy
* future of money
Or for those that want need a video to explain the same concept see below. This was explained to me at a young age, I took it to heart.start early, live within your means.
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